AML Monitoring & Screening

Overview

To ensure compliance with AML regulations, organizations have a responsibility to conduct various AML checks. These checks are crucial in minimizing the risk of engaging with individuals or entities that pose a potential threat. By conducting thorough AML checks, organizations can significantly reduce the likelihood of onboarding customers with a history of sanctions or involvement in financial crime.

It's important to note that customer profiles are not static and can change over time. Therefore, organizations need to implement ongoing monitoring of their business relationships. This ongoing monitoring is essential to ensure that the organization maintains up-to-date knowledge about their business relationships. It involves scrutinizing transactions to verify that they align with the expected behavior and purpose of the business relationship.

The objective of ongoing monitoring is to prevent non-compliance and protect the organization's reputation. By staying vigilant and regularly assessing the risk profiles of their customers, organizations can mitigate potential risks and promptly address any changes that might expose them to compliance breaches or reputational damage.

Effective ongoing monitoring procedures help organizations maintain a current understanding of their business relationships and ensure that transactions are consistent with expected patterns. By fulfilling these requirements, organizations demonstrate their commitment to AML compliance and contribute to a safer and more secure financial environment.

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Mode

There are two distinct modes available for AML screening and monitoring workflows. These modes differ based on whether you need to conduct ad-hoc screening or ongoing monitoring at regular intervals.

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Mode 1

Figure 1- AML Monitoring mode 1 flow

In Mode 1, the primary focus is on conducting a one-time Anti-Money Laundering (AML) screening without placing customers on the monitoring list. To help you understand the process, let's go through the steps involved:

1. API Invocation and User Information Transmission:

   • Invoke the OSP platform's AML screening and monitoring API.
   • Transmit the relevant user information to the OSP platform.

2. Profile Creation for New Users:

   • If the Reference ID (a unique identifier for each customer record in OSP) provided in the request parameters does not exist on the platform, create a profile for the new user.

3. Verification Generation:

   • Generate a verification process for the user.
   • The verification details can be viewed on the "Verifications" page.

4. Case Creation upon Refinitiv Profile Match:

   • If the user information provided in the API matches a profile in the Refinitiv database, create a case for further investigation.
   • The case record can be viewed on the "Cases" page.

5. Compliance Review:

   • Compliance reviewers need to review the created case.
   • Regardless of the case result, the customer will not be placed on the monitoring list.

Please refer to "Figure 1 - AML Monitoring Mode 1 Flow" for a conceptual view of how this mode operates.

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Note:

AML screening aims to detect and report any suspicious activity related to money laundering. The purpose of Mode 1 is to conduct a one-time screening without continuous monitoring of customers.

Mode 2

Figure 2- AML Monitoring Mode2 flow

In Mode 2, the focus is on conducting AML screening and putting customers on the monitoring list. There are two scenarios: a single check and ongoing monitoring. Let's go through the steps for each scenario:

Single Check Screening Scenario:

1. API Invocation and User Information Transmission:

   • Invoke the OSP platform's AML screening and monitoring API.
   • Transmit the relevant user information to the OSP platform.

2. Profile Creation for New Users:

   • If the Reference ID provided in the request parameters does not exist on the platform, create a profile for the new user.

3. Verification Generation:

   • Generate a verification process for the user.
   • The verification details can be viewed on the "Verifications" page.

4. Case Creation upon Refinitiv Profile Match:

   • If the user information provided in the API matches a profile in the Refinitiv database, create a case for further investigation.
   • The case record can be viewed on the "Cases" page.

5. Compliance Review and Monitoring List Placement:

   • Compliance reviewers review the case.
   • If the case result is approved, put the user on the monitoring list.
   • If the case result is rejected, there is no need to put the user on the monitoring list.

Ongoing Monitoring Scenario:

1. User Monitoring Procedures:

   • Once a user is placed on the monitoring list, conduct monitoring procedures daily.

2. Comparison of Latest and Historical Information:

   • Compare the user's latest information with the historical information on record.

3. Case Creation for Information Changes:

   • If there are changes in the user's information, create new cases for further investigation.

Please refer to "Figure 2 - AML Monitoring Mode 2 Flow" for a conceptual view of how this mode operates.

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Note:

AML screening and monitoring aim to detect and report any suspicious activity related to money laundering. In Mode 2, customers undergo both screening and can be placed on the monitoring list, either through a single check or ongoing monitoring procedures.